Lula government intensifies negotiations with the US to exclude food, coffee and aircraft from the tariff

With a few days to go to the entry into force of a 50% rate on Brazilian products announced by the United States, the federal government accelerates negotiations with US officials. The measure, scheduled for August 1, was confirmed by President Donald Trump and may affect strategic sectors of the Brazilian economy.

According to Folha de S.Paulo, Vice President Geraldo Alckmin, who also responds to the Ministry of Development, Industry, Commerce and Services, leads diplomatic efforts with US Secretary of Commerce, Howard Lutnick. The government’s priority is to remove from overlapping list products considered essential, such as Embraer’s food, coffee and aircraft.

Brazil is responsible for 95% of overall orange juice exports, 42% for the United States. In the coffee sector, the country sent 2.87 million bags to the US market between January and May 2025, representing 17.1% of the entire Brazilian export of the product in the period, according to the Brazilian Coffee Exporters Council (Cecafe).

In addition to food, another item focusing on the negotiations is Embraer’s aircraft. The government argues that, by importing parts of American origin, the surcharge on airplanes would create negative effects in both countries. The Brazilian company has a significant presence in the US regional aviation market.

Despite the negotiations, so far there is no confirmation of exclusions in the list of feed products. In parallel to negotiations, the Lula government confidentially maintains a contingency plan, which is finalized and awaits the approval of the president.

On Monday (28), Finance Minister Fernando Haddad attended a meeting with Lula and Alckmin at the Planalto Palace. At the end of the meeting, Haddad stated that they were presented to the President “all the possibilities that are available to Brazil and from him at the head of the Presidency of the Republic”, but stressed that “Brazil’s focus is to negotiate”.

The minister indicated that Alckmin is in permanent contact with US officials and reiterated the strategy of maintaining the dialogue open. “There have been conversations. So what was said last week, [semana] LOVED, that Brazil will not leave the negotiating table at any time, it is valid and will continue to be valid, ”he said.

Haddad also stated that the Brazilian government awaits the publication of the US executive act with the details of measures before adopting any definitive positioning. “We don’t even know the decision that will be made. Possibly, we expect not to be unilateral on the 1st. So, we will insist that the measure is not unilateral by the United States,” he said.

Among the measures studied in the contingency plan is the creation of a private emergency credit fund to support companies and affected sectors. The model may include mechanisms similar to those used during the pandemic, focusing on job maintenance and access to financing.

Alckmin stated that the contingency plan is ready, but reiterated that the priority continues to avoid the entry into force of the fare: “The contingency plan is a plan that is being elaborated, quite complete, well done, but all the commitment now is for us to seek to solve the problem.”

When asked about a possible direct contact between presidents Lula and Trump, Alckmin stated that he did not deal with the subject with the president. “I didn’t talk to President Lula about it, but President Lula is the man of dialogue. He always defended the dialogue, which is what we do permanently,” he said.

On Sunday (27), Trump confirmed that the overcrowders announced in April would be applied from the first day of August. For Senate government leader Jaques Wagner (PT-BA), who is on a mission in the United States with seven other senators, it will be difficult to postpone the beginning of the measure.

Alckmin has been active as the main articulator since the announcement of the tariffs and, on July 19, reinforced with Lutnick at the disposal of the Brazilian government to maintain negotiations. According to Lula, however, efforts have not yet resulted in advances. “Every day he calls someone and no one wants to talk to him,” the president said during an event in Sao Paulo last week.

Foreign Minister Mauro Vieira is in the United States for a UN conference, but so far there is no forecast of meetings with Trump government representatives. If there is no sign of bilateral meeting, the chancellor should not go to Washington.

Government sources confirm that there will be no concessions on fare political issues, such as legal proceedings involving former President Jair Bolsonaro. In an official note, the executive reiterated that national sovereignty is non -negotiable in dealing with the United States.

During a meeting with representatives of the private sector, the US embassy in Brazil, Gabriel Escobar, said the US government has an interest in existing strategic minerals in the Brazilian territory. In response, Lula publicly stated that the reserves belong to the people of Brazil.

Internally, Alckmin has maintained dialogue with industry and agribusiness leaders to evaluate the impacts of the tariff. From August 1, if there is no agreement, affected Brazilian products may face one of the largest surcharge of international trade. The government is still trying to avoid this outcome.

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